By Noreen Burke
GossipMantri.com – The market is whipped between hopes of an effective coronavirus vaccine and fears of an increase in the number of cases in the United States and the prospect of stricter containment measures. This momentum should continue to dictate market sentiment over the coming week as investors are caught in a back and forth between growth and value stocks. Market watchers will also be closely monitoring some big-name retail earnings this week, as well as US retail sales data as the holiday season approaches. There will also be a flurry of appearances from Federal Reserve, European Central Bank and Bank of England officials to analyze. Here’s what you need to know to start your week.
- Virus outbreak
The number of new cases in the United States rose on Friday to a daily high of more than 177,000, the fourth day in a row that an all-time high has been set, according to a Reuters tally of figures from US public health agencies.
The number of COVID-19 patients in U.S. hospitals on Friday reached a record high of 68,141.
Governors of several states, including California, Oregon and Washington, have urged residents to avoid traveling out of state, fearing that the upcoming holiday season could accelerate already alarming spikes in infections and illnesses. hospitalizations.
Since the start of the pandemic, the virus has infected 10,690,665 people in the United States, killing 243,580 of them, according to a Reuters tally.
- Value vs growth
Investors are suddenly more bullish on the global economic outlook after bullish news on the Pfizer (NYSE 🙂 at the beginning of last week.
The vaccine breakthrough sparked a rally in stocks of energy companies, banks, industries and other valuable stocks – generally defined as stocks that trade at a discount to their expected intrinsic value. At the same time, have investors recognized profits in technology stocks, which have benefited from a home environment.
But investor optimism may be overstated, especially as Fed officials have warned of the potential damage that rising virus cases could cause to the economy, especially in the absence of a new economic recovery plan.
Investors may also underestimate the time it takes to widely distribute the vaccine and whether the breakthrough reduces the incentives for lawmakers to provide a fiscal stimulus.
- US Retail Sales Figures
US retail sales figures for October, due on Tuesday, are expected to post an increase after a larger than expected increase of 1.9% the month before. This would indicate that the United States has entered the fourth quarter with consumer spending still strong despite growing headwinds from the pandemic.
Also expected to rise in October, reflecting higher new home sales as buyers take advantage of historically low mortgage rates. The United States will also release data for October.
At the same time, Thursday’s weekly data will be closely watched amid lingering concerns about the strength of the recovery in the labor market.
- Retail revenues
Investors will be watching earnings reports and forecasts from U.S. retailers closely to assess how consumer demand is changing amid the worst public health crisis in decades.
Walmart Tuesday (NYSE :), Home Depot (NYSE 🙂 and Kohl’s (NYSE 🙂 must all report before the market opens. Wednesday, Target (NYSE :), Lowe’s (NYSE 🙂 and TJX (NYSE 🙂 will report their results before the opening and NVIDIA (NASDAQ 🙂 will report their results after the market closes. Macy’s (NYSE 🙂 will report before the market opens on Thursday and Foot Locker (NYSE 🙂 is expected to report before the Friday opens.
- Central bankers
Several Fed officials are due to speak this week, including Vice President Richard Clarida on Monday, New York Fed Chairman John Williams Tuesday and Chicago Fed Chairman Charles Evans Wednesday.
Meanwhile, central bankers in Europe will also try to provide advice as the continent goes through a second wave of the pandemic.
The president of the European Central Bank, Christine Lagarde, is expected to make two virtual appearances during the week. Bank of England Governor Andrew Bailey, Deputy Governor David Ramsden and Chief Economist Andy Haldane are also due to make appearances on Monday and Tuesday.
–Reuters contributed to this report